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Unlicensed Software Raids by Ipoh Enforcement Officers Land Two Companies in Hot Soup

The companies and their directors to face fines and possible jail terms, if found guilty in a court of law, for using unlicensed software to conduct their business.

Ipoh, Perak (Monday, December 4, 2017) – Enforcement Officers from the Ministry of Domestic Trade, Cooperatives and Consumerism (“MDTCC”) Ipoh Branch Office raided two businesses in Ipoh last week for using suspected unlicensed or pirated software in their daily business operations.

In a media conference held to announce the successfully conducted raids, MDTCC Perak Enforcement Section Chief, Ahmad Ahrazzudin said, “The raids conducted were undertaken consecutively on November 29 & 30, 2017, and resulted in the seizure of nine computers, and 34 copies of suspected unlicensed software, worth an estimated (hardware and software) RM354,000 in value. Amongst the many copies of suspected unlicensed software found were software belonging to Adobe, Autodesk, and Solidworks, all members of BSA | The Software Alliance (“BSA”).”

Specific details of the two raids conducted, are as follows:

Date of

Raid

Industry

Location

PC

Seized

PC Value

(RM)

Software

Seized

SW Value (RM)

Total Value (RM)

29/11/17

Food Packaging

Ipoh

4

12,000

6 copies

130,000

142,000

30/11/17

Interior Design

Ipoh

5

15,000

18 copies

197,000

212,000

Grand Total

9

27,000

34 copies

327,000

354,000

According to Ahmad both raids were initiated as a result of tip-offs received from BSA |The Software Alliance (“BSA”) on the alleged use of unlicensed software in the two said organizations. The raids also demonstrated the MDTCC Ipoh branch office’s continued commitment to ensuring that intellectual property rights of copyright owners are being protected under the Copyright Act of 1987.”

He adds, “The Ministry takes a very serious view against companies conducting their business using unlicensed or pirated software. This unethical practice is a clear violation of the Copyright Act which stipulates that if a business is found to have used or is in possession of illegal copies of software, the organization, as well as its senior management, may face criminal prosecution. If convicted, the responsible individuals and/or organization will face a fine of between RM2,000 to RM20,000 for each infringing copy, a prison sentence of up to five years, or both.”

“As the agency responsible for the protection of intellectual property rights in Perak, I can promise that there will be no let-up in our efforts to curb this unhealthy trend. Let the raids conducted last week serve as a reminder to businesses in Perak state that they are constantly under watch,” Ahmad concluded.

In a statement to media, Gary Gan, BSA’s Director for Compliance Programs, Asia Pacific said, “Cybercrime is real and on the rise, transcending borders. Business owners must be vigilant to protect themselves and their businesses from the growing threats of malware and data theft through an effective and efficient software license management practice.”

“The BSA continues to work closely with various government agencies, including the MDTCC to promote the use of legal and licensed software in business organisations. The commitment shown by these MDTCC Enforcement Officers are highly commendable. Although the rate of unlicensed software installation in the country remains at an all-time low of 53 percent, much still needs to be done if we are to rid the use of unlicensed software in Malaysia.”

“In May this year, the BSA presented RM20,000 as reward to an informant whose information was instrumental in leading to a Sarawak-based precision engineering company being raided in Kuching – for their suspected role in using unlicensed software to conduct their business. The informants who provided BSA with information which led to the successful raids conducted on November 29 & 30, 2017, will also stand to receive similar rewards in due time,” concluded Gan.

About BSA | The Software Alliance

BSA | The Software Alliance (www.bsa.org) is the leading advocate for the global software industry before governments and in the international marketplace. Its members are among the world’s most innovative companies, creating software solutions that spark the economy and improve modern life. With headquarters in Washington, DC, and operations in more than 60 countries, BSA pioneers compliance programs that promote legal software use and advocates for public policies that foster technology innovation and drive growth in the digital economy.

About the BSA Anti-piracy Hotline and Reward Program

To complement the enforcement efforts of the MDTCC, BSA operates a toll-free anti-piracy hotline at 1-800-887-800, and a reward of RM20,000* is given to any informant that is able to provide the BSA with information that leads to a successful enforcement action. Reports can also be made online at www.bsa.org. All reports to the BSA, are treated with the strictest of confidence.